What Banking Products & Services Do Small Businesses Prefer?
4 Banking Products & Services for Small Businesses
1. Business Credit Card
Keeping a keen eye on spending is an important task for small business owners. A credit card is an ideal solution to pay for business lunches, travel, inventory, and other items. Some bank cards even have pre-set spending limits so that management can have a better handle on account activity.
2. Business Checking Account
Another favorite offering among entrepreneurs is a comprehensive business checking account. One that offers debit and credit card processing, online banking, and electronic fund transfer capability is essential to accommodate both customers and vendors. Additional features, such as cash management tools and free bill payment service, are also ideal for ensuring invoice payments and tracking income flow.
3. Daily Sweep Services
Small businesses now have the option to arrange automatic "sweeps" or transfers of surplus funds from checking accounts into interest-bearing accounts. The bank transaction is typically set up to automatically happen at the close of business each day. One of the many benefits of sweep services is companies earn interest and the swept funds are there for the next day's financial transactions.
4. Money-Market Accounts
Just as some individuals strive to grow their savings, entrepreneurs also want a reserve of emergency funds. Money-market accounts fit the bill because they build on deposits with compounded interest. Banks will typically reward small businesses with those interest payments each month. Tiered interest rates might also be available for companies that meet size and other eligibility conditions.